2023-05-01 10:41:27
1/5/2023–|Last updated: 1/5/202301:38 PM (Makkah Al-Mukarramah)
WASHINGTON (Archyde.com) – The assets of First Republic Bank have been seized and an agreement has been concluded to sell it to JPMorgan Chase Holdings, becoming the third major U.S. bank to fail in two months, regulators said on Monday.
And the regulatory authorities stated – in a statement – that “JP Morgan” (one of the large banks on “Wall Street”) will acquire most of the assets of the “First Republic” and all its deposits, including uninsured deposits.
Sources familiar with the matter said – earlier this week – that “JP Morgan” was one of several companies that expressed interest in buying the bank, including the “BNC” financial services group and the “Citizens” financial group, which made final offers on Sunday at an auction. Managed by US regulators.
The California Department of Financial Protection and Innovation said – earlier today, Monday – that the ownership of the “First Republic” bank had transferred to it, and the Federal Deposit Insurance Corporation appointed a judicial guard over the bank.
The Federal Deposit Insurance Corporation estimated – in a statement – that the cost of the deposit insurance fund will amount to regarding $ 13 billion, and the final cost will be determined when the institution ends the receivership.
series collapses
The deal to buy First Republic Bank comes less than two months following the collapse of Silicon Valley and Signature Banks, amid a wave of flight of deposits from US banks, forcing the Federal Reserve (US Central Bank) to intervene in emergency measures to maintain market stability. .
These banks collapsed following Silvergate Bank – which was focused on cryptocurrencies – voluntarily liquidated its assets.
According to a statement by the Federal Deposit Insurance Corporation, the total assets of First Republic Bank amounted to $229.1 billion as of April 13, while deposits amounted to $103.9 billion.
“The government invited us to take a step forward, and we did,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase.
According to the statement, the collapsed bank’s 84 branches will reopen in 8 states as branches of “JP Morgan Chase” starting today, Monday.
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